(May 10, 2024) In recent months, physical media fans have watched their medium of choice take a beating. First, we grappled with Disney ceasing DVD and Blu-ray sales in Australia—Guardians of the Galaxy Vol. 3 was the last release to ship to the land down under. Then came news that Best Buy was cutting physical media sales from its brick-and-mortar locations – a tough pill to swallow for collectors who like purchasing films in person. And, most recently, Target announced that movie discs were largely being cut from stores nationwide.
It hasn't been pretty.
Today, however, disc fanatics were treated to a small glimmer of good news: two retail chains have opened their doors to our old friend Mr. Disc, giving it a new place to stay—sort of.
According to a national press release, Studio Distribution Services (SDS), a large outfit specializing in film and television physical media entertainment in North America, has announced a retail deal with Fred Meyer grocery stores, GameStop retail locations, and GameStop.com. The deal will bring a curated selection of new releases and catalog 4K UHD, Blu-ray, and DVD titles to 132 Fred Meyer grocery stores and a dedicated video wall space for films within 170 GameStop stores nationwide, along with sales through GameStop.com.
The relationship with Fred Meyer begins this coming Tuesday (May 14) with the release of Dune: Part Two and will expand to include retail floor stand fixtures. Shoppers will be exposed to recent releases, catalog assortments, anime, and seasonal titles. Fred Meyer says these selections will be "updated regularly."
"This new relationship with SDS will allow Fred Meyer stores to continue to offer the best and most exciting new releases to our customers. Together, SDS and Kroger are thrilled to bring the products consumers crave to where they conveniently shop," said Austen Bates, Category Manager and Buyer for The Kroger Co. / Fred Meyer.
The theory behind the Fred Meyer deal is simple: shoppers in a grocery store are a captive audience, and foot traffic is high. So, why not dangle new films and old classics in their line of sight?
The GameStop deal is similar, as 4K UHD, Blu-rays, and DVDs will begin appearing on dedicated video wall spaces with 20 title facings in select stores across the nation. But GameStop is also taking the fight online and offering an expanded assortment of titles through GameStop.com. This is an interesting move, if not questionable, as the internet is the healthiest of shopping realms for physical media – can GameStop.com offer pricing and shipping deals that match or best a behemoth like Amazon?
"With gaming consoles offering both gaming and movie playback capabilities, this expansion makes perfect sense," said Mark Lewis, SDS Senior Vice President of Sales. "SDS is excited to leverage our position as a leading physical media film distributor to bring consumers their favorite films where they already shop for their entertainment."
Studio Distribution Services claims both retail arrangements are bolstered by a "resurgence of audiences looking to purchase more of their favorite entertainment on physical formats." However, I'm skeptical that such a movement is actually occurring. Sales numbers tell the story of a segment in decline; just last year, sales fell 25% from the year prior, with the industry recording $1.56 billion in revenue. Rewind to 2017, and that number was over $4 billion.
I'd even point to the limited nature of these new deals as proof of a weak market. There may be a small resurgence... but it's not strong enough to have either retailer commit to large swaths of floor space.
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